Four-year 3.75% debentures fund Optimization Plan at the Platosa Mine
By Devika Patel
Knoxville, Tenn., Nov. 2 – Excellon Resources Inc. said it has arranged a C$6 million fully subscribed private placement of four-year 3.75% secured convertible debentures.
The debentures convert to common stock at a conversion price of C$0.50, which is a 56.25% premium to C$0.32, the Oct. 30 closing share price. After two years, the notes may be put or the company may force conversion.
Investors will also receive 2,004,000 warrants. Each warrant is exercisable at C$0.50 for four years. The strike price is also a 56.25% premium to the Oct. 30 closing share price.
Settlement is expected Nov. 16.
Proceeds will be used to begin implementing an Optimization Plan at the Platosa Mine and for general corporate purposes.
Toronto-based Excellon is a silver mining and exploration company.
| Issuer: | Excellon Resources Inc.
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| Issue: | Secured convertible debenture
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| Amount: | C$6 million
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| Maturity: | Four years
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| Coupon: | 3.75%
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| Conversion price: | C$0.50
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| Conversion premium: | 60%
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| Call: | After two years
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| Put: | After two years
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| Warrants: | 2,004,000 warrants
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| Warrant expiration: | Four years
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| Warrant strike price: | C$0.50
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| Pricing date: | Nov. 2
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| Settlement date: | Nov. 16
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| Stock symbol: | Toronto: EXN
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| Stock price: | C$0.32 at close Oct. 30
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| Market capitalization: | C$17.04 million
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